Information Sheet 3

CALCULATING THE LEVEL OF DEMAND – Issue 1

The table below shows the demand for the magazine based upon the price. Take this as your base
level of demand, and then add the relevant number according to the formula for advertising, distribution,
product and promotion in order to obtain the total demand for the magazine.

Price Basic demand

10p - 50p 300,000
50p - 99p 200,000
£1.00 - £1.49 160,000
£1.50 - £1.99 150,000
£2.00 - £2.49 120,000
£2.50 - £2.99 100,000
£3.00 - £3.49 80,000
£3.50 - £3.99 50,000
£4.00 - £5.00 20,000

Advertising: Each 10,000 spent on advertising increases demand by 4,000 copies

Distribution: Mail order adds 20,000 copies, newsagents add 40,000 copies
Product: Mainly stories adds 20,000 copies, mainly pictures adds 40,000 copies
Promotion: A free gift adds 10,000 copies

CALCULATING THE LEVEL OF DEMAND – Issue 2

The table below shows the demand for the magazine based upon the price. Take this as your base level of
demand, and then add the relevant number according to the formula for advertising, distribution, product
promotion and sales of issue 1, in order to obtain the total demand for the magazine.

Price Basic demand

10p – 50p 350,000
50p - 99p 250,000
£1.00 - £1.49 190,000
£1.50 - £1.99 170,000
£2.00 - £2.49 140,000
£2.50 - £2.99 125,000
£3.00 - £3.49 100,000
£3.50 - £3.99 60,000
£4.00 - £5.00 30,000

Advertising: Each 10,000 spent on advertising adds 4,000 copies to demand

Distribution: Mail order adds 20,000 copies, newsagents add 40,000 copies
Product: Mainly stories adds 20,000 copies, mainly pictures adds 40,000 copies
Promotion: A free gift adds 10,000 copies

To take account of brand loyalty, bonus sales for issue 2: Add 10% of the sales of issue 1 to demand

© Holdsworth Associates
© Holdsworth Associates